Chevron reported earnings per share (EPS) of $3.45 with revenue totaling $47.18 billion for the fourth quarter of 2022. Analysts had anticipated earnings of $3.19 per share and sales of $50.92 billion. For the full year, Chevron's earnings fell by 30% to $13.13 per share, and revenue declined by 15% to $200.95 billion.
The decrease in earnings can be attributed to various factors, including $1.8 billion in US upstream impairment charges and $1.9 billion in decommissioning obligations from previously sold assets in the US Gulf of Mexico. Foreign currency effects also negatively impacted earnings by $479 million.
Despite the dip in earnings in the fourth quarter, Chevron's Chairman and Chief Executive Officer, Mike Wirth, highlighted the company's achievements in 2022. He stated that the company returned more cash to shareholders and produced more oil and natural gas than any year in its history.
In total, cash returned to shareholders reached over $26 billion, an 18% increase from the previous year's record total. Additionally, annual worldwide net oil-equivalent production surpassed 3.1 million barrels of oil-equivalent per day, with a significant 14% growth in the United States.
In the US upstream segment, the company reported a loss in the fourth quarter of 2023 due to factors such as charges related to decommissioning obligations for previously sold assets in the US Gulf of Mexico, higher impairment charges, mainly from assets in California, and lower realization values. These were partially offset by increased sales volumes, including production post-closing of the PDC acquisition. US net oil-equivalent production increased by 34% compared to the fourth quarter of 2023, setting a new quarterly record, largely driven by the acquisition of PDC, which contributed 266,000 oil-equivalent barrels per day during the quarter, and higher production in the Permian Basin.
The international upstream segment witnessed higher earnings in the fourth quarter of 2023 compared to the previous year. This can be attributed to the absence of write-off and impairment charges incurred during the fourth quarter of 2022 and lower operating expenses, partially offset by lower realizations. However, net oil-equivalent production dropped by 25,000 barrels per day during the quarter compared to the same period in 2021, mainly due to normal field declines.
In the US downstream segment, earnings for the fourth quarter of 2022 were lower compared to the previous year due to decreased margins on refined product sales. Crude oil inputs at refineries during the quarter increased by 4% compared to the year-ago period, with the company processes more crude oil in place of other feedstocks.
Refined product sales increased by 5% from the fourth quarter of 2021,primarily due to higher demand for jet fuel.
The international downstream segment, on the other hand, reported higher earnings in the fourth quarter of 2022 compared to the same period in 2021. This was driven by lower unfavorable foreign currency effects. Crude oil inputs at refineries decreased by 4% during the quarter as refinery runs were reduced due to planned shutdowns
The company also increased its quarterly dividend by 8% to $1.63, up from $1.51.